Centre reviewing impact of coronavirus on Indian industry, says Finance Minister

New Delhi, February 18

The central government is currently reviewing the impact that the global outbreak of coronavirus is having on the Indian business industry, the finance minister said on Monday.

In statements that came after she met business leaders to assess the impact of the coronavirus and discuss plans to contain the damages,  Finance Minister Nirmala Sitharaman said that the central government would announce measures based on “comprehensive consultation”.

“Pharmaceutical, chemical, and solar equipment makers have been vocal about some disruption due to coronavirus outbreak,” she said.

She said there were no reports of shortages of medicines or medical equipment. Instead, the pharmaceutical industry is asking for the ban on the exports of certain items to be lifted, she said. 

She also said that there were no concerns about the impact of the outbreak on price levels in the country, and that it was “too early” to talk about its impact on the Centre’s ‘Make in India’ initiative.

Reuters quotes a presentation by the Confederation of Indian Industries (CII) as saying that the outbreak of the virus in China has hit India's manufacturing and exports of medicines, electronics, textile and chemicals.

China is the biggest source of intermediate goods, worth $30 billion a year.

The news report also quoted government and industry officials as saying that Indian business leaders want cuts in import duties on antibiotic drugs, mobile parts and other items as the outbreak has disrupted supplies from China.

The death toll of the coronavirus now stands over 1,700—most of these in mainland China.  Over 65,000 people have been reportedly infected with the virus.

The outbreak has reportedly put a strain on the global economy---in particular on China’s manufacturing sector.

The head of China’s state assets regulator said the coronavirus would have a “major impact” on industries in February, suggesting the worst may still be to come in terms of business activity.

Asian markets, barring China, closed with heavy losses after warning by Apple and HSBC over the impact of novel coronavirus outbreak. The coronavirus epidemic that emerged in central China has now killed nearly 1,800 people and spread around the world.

Apple said that it might not meet its sales projections for January-March due to the outbreak. HSBC Holdings said the epidemic was impacting its Asia business and announced shedding $100 billion in assets, trimming of its investment banking along with 35,000 job cuts in three years.  Agencies